Shutterstock (SSTK)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 10.34% | 12.22% | 14.05% | 17.39% | 18.38% |
| Operating profit margin | 7.36% | 7.81% | 11.33% | 14.04% | 12.73% |
| Pretax margin | 6.70% | 13.99% | 11.01% | 13.60% | 13.37% |
| Net profit margin | 3.85% | 12.60% | 9.21% | 11.93% | 10.72% |
Shutterstock's profitability ratios have shown a downward trend over the years based on the provided data.
The Gross Profit Margin decreased from 18.38% in 2020 to 10.34% in 2024, indicating a decrease in the percentage of revenue remaining after deducting the cost of goods sold.
The Operating Profit Margin decreased from 12.73% in 2020 to 7.36% in 2024, reflecting a decline in the efficiency of the company's core operations to generate profits.
The Pretax Margin fluctuated over the years, reaching its lowest point at 6.70% in 2024. This ratio indicates the company's ability to control operating expenses and generate profits before taxes.
The Net Profit Margin decreased from 10.72% in 2020 to 3.85% in 2024, suggesting a significant decline in the company's ability to convert revenue into net income.
Overall, the decreasing trend in all profitability ratios indicates potential challenges in maintaining profitability for Shutterstock in the coming years. This could be a cause for concern for investors and stakeholders, raising questions about the company's cost structure and revenue generation strategies. Additional analysis and insight into the factors contributing to the declining profitability may be needed to address these concerns effectively.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 5.25% | 6.60% | 10.62% | 12.69% | 11.69% |
| Return on assets (ROA) | 2.74% | 10.64% | 8.64% | 10.79% | 9.84% |
| Return on total capital | 10.77% | 12.98% | 20.92% | 23.08% | 20.21% |
| Return on equity (ROE) | 6.93% | 20.92% | 17.01% | 19.61% | 17.01% |
The profitability ratios of Shutterstock show varying trends over the years.
1. Operating Return on Assets (Operating ROA) increased from 11.69% in 2020 to 12.69% in 2021, indicating improved operational efficiency. However, it declined to 10.62% in 2022, further dropping to 6.60% in 2023 and 5.25% in 2024. This suggests a decreasing ability to generate operating profit from its assets over the years.
2. Return on Assets (ROA) followed a similar pattern, increasing from 9.84% in 2020 to 10.79% in 2021, then decreasing to 8.64% in 2022 before rising again to 10.64% in 2023 and dropping significantly to 2.74% in 2024. This indicates that the overall profitability of the company in generating earnings from its assets has been fluctuating.
3. Return on Total Capital peaked at 23.08% in 2021 but gradually declined to 10.77% in 2024. This ratio reflects the company's ability to generate profits from both equity and debt capital investments. The declining trend suggests a diminishing return on the total capital employed by the company.
4. Return on Equity (ROE) increased from 17.01% in 2020 to 19.61% in 2021, followed by a decrease to 17.01% in 2022. It then rose to 20.92% in 2023 before dropping notably to 6.93% in 2024. ROE indicates the return generated for the shareholders' equity investment. The fluctuating trend of ROE implies varying profitability levels for the shareholders over the years.
Overall, while some profitability ratios showed improvements initially, the downward trend in most ratios in recent years, especially in 2024, highlights potential challenges in maintaining consistent profitability and efficient asset utilization for Shutterstock.